Aug 4, 2009 6:00pm EDT
countries - brazil, russia and india. the bric four was actually once expected to reshape the global economy. but in today's extraordinary climate, that seems like wishful thinking in better times. this is the growth expected from china; while in neighbouring india, the economic fundamentals are also strong. but brazil has stumbled with no clear growth expected until 2010; and as for russia - over reliant on high commodity prices it now risks the spectre of high inflation and high unemployment. and the bric fault lines don't only concern numbers. for its members are fierce competitors and serious mistrust abounds - which is a barrier to enhancing trade and economic cooperation. >>zweig: well the chinese don't trust the indians at all. the indians don't trust the chinese. the 1962 border war seared, forever seared, the brains of indian policy makers. brazilian businessmen complain, over the last couple of years that china came - hu jintao the leader of china visited - promised all kinds of money, left - and then everybody said, where's the money? >>reporter: it's one of those strange historic
Aug 25, 2009 6:00pm EDT
: in addition to asean, the rmb can then be used as a trading currency with india, pakistan, russia, japan and korea. and the third step is to use the rmb globally. that's the general plan. >>reporter: actually, this is a huge plan - that's aimed at reducing the us dollar's dominance as an international currency. but first, beijing has got its work cut out. the country needs a social safety net to help through any financial shocks. and it should also liberalize its capital account and the convertibility of thecurrency. only then could the rmb hope to join the reserve currency club. >>song: and right now, we're not there yet. still we need a lot of time to build up china's capital market, banking system and also the social security and the insurance system. >>reporter: as for a time frame, the jury is divided - optimists cite 15 years, the pessimists 40 ! >>: for now, china will pay for brazilian sulphur in dollars. nonetheless, neighboring governments, eventhe us, welcome measures, albeit modest, that allow greater international use of the rmb. but some asean traders still need convincing.